Bplant has issue a Request For Proposals (RFP) for all its asset in sarawak. Hope some good offers will come . Book value for the plantantions in sarawak was only about $57 mil . As such , substantial gain on disposal can be realised eventually. A positive move to sell the low yeilding sarawak assets which have not been contributing to the profitability of the company anyway.
Maybank investment bank listed 100 mil unit new Bplant -CB ( call warrant) today . But nothing traded at all for today . Exercise price $0.68 , European style, convertion ratio 1:1, cash settled, expiry one year later . Issue price $0.15. I guess this investment bank must have accumulated substantial amount of Bplant mother share and therefore decide to issue this CW . Can anyone who is family with CW comment on Maybank IB's intention?
Bplant-CB :. Seller $0.175 (200k), $0.18 (200k) Buyer $0.17 (200k) , $0.165 (200k). Exactly same set of buy/sell yesterday , the listing day ,without any trade closed . MBB is fishing for higher price ?
Bplant has nothing to do with it. Maybank will settle in cash the difference. Maybank just open betting centre. pay 15 sen entrance fee and bet price does not exceed 68 sen.
Call warrant is a derivative issued by IB independently. I think Maybank IB has quite some position in Bplant already before the CB is issued. The purpose of the CB is probably to enhance it's profit . Only 200k unit released at 18.5 sen today , nothing on 1st listing day yesterday. It seem that the IB is in no hurry to release more at current price. The IB will gradually released in batches when price go higher led by mother share . Please share your knowledge if you know more .
This friday you will know whether got extra windfall tax or not. Personally i don't think will impose windfall tax. Plantation firm already need to pay for levy since CPO price above RM3k. In addition, the company mostly affected is Sime Plant, FGV, IOI. If felda harvester not happy, they may vote the government out.
@Johnzhang. Book value 57million was valuation more than 20years ago. NTA 1.17 is also based on valuation more than 20 years ago. We are now able to buy oil palm land based on values more than 20years ago.
FFB production in 3rd Q was about 13.5% higher than 2nd Q. Average selling prices in 3rd Q were also higher. I do expect 3rd Q earnings to be higher than 2nd Q by about 25%.
This book is the result of the author's many years of experience and observation throughout his 26 years in the stockbroking industry. It was written for general public to learn to invest based on facts and not on fantasies or hearsay....
CCWONG
290 posts
Posted by CCWONG > 2021-10-21 11:33 | Report Abuse
Why I invest in oil palm shares?
1. There is daily reporting of CPO prices by MPOB (www.mpoc.org.my).
2. There is monthly reporting of FFB, CPO, Etc harvests by oil palm
listed companies in Bursa.
3. There is quarterly reporting of oil palm listed companies in Bursa.
4. So, in the oil palm industry for listed oil palm companies, there is
nothing more transparent than these.
5. No need to listen to this or that, got projects or got this or that.
6. You can actually tabulate the above (No. 1 & No. 2 and do your own
projection on the expected turnover & NPAT).
7. So, you will roughly know your hard-earned money investments go.
8. If you are worried about surprises like asset impairments, etc, you
can do your own estimates. Again, from the financial reports, you know
9. Look at their past financial reports & share price movements.
10. Last but not least, you can sleep well & rest assured be rewarded.
(The above is my opinion to be a better investor, not buy or sell call).